Lloyds TSB sees no major impact from HBOS earnings

LONDON (Reuters) - Lloyds TSB Group said on Friday the trading update from HBOS was broadly consistent with the impairment analysis

conducted by Lloyds TSB as part of its review process in October 2008.

* Will be launching a monthly premium, payment protection insurance (ppi) product for personal loan customers in January 2009

* Transition to this new product is expected to reduce Lloyds TSB's income by around £300 million over the next twelve months

* Additional impairment losses being incurred by HBOS are not currently expected to have a significant impact upon the size of the net negative capital adjustments the group is likely to make upon acquisition

* Anticipates making a provision of approximately £120 million in its 2008 accounts in respect of its current obligation for the estimated interest cost

on the FSCS borrowings

* Written off the total value of its investment in Bradford & Bingley, amounting to approximately £30 million